A man walks during sunset at the beach in Sharm El Sheikh, Egypt.
A man walks during sunset at the beach in Sharm El Sheikh, Egypt.
A man walks during sunset at the beach in Sharm El Sheikh, Egypt.
A man walks during sunset at the beach in Sharm El Sheikh, Egypt.

Russian flights to Egypt's Red Sea resorts to resume after hiatus


Hamza Hendawi
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Russia lifted a ban on charter flights to Egypt’s main Red Sea resorts on Thursday, ending a five-year hiatus.

Flights were suspended in 2015 after a chartered Russian plane crashed over the Sinai Peninsula shortly after it took off from Sharm El Sheikh. All 224 people on board the St Petersburg-bound flight were killed. An ISIS-affiliated group claimed responsibility.

Regular Russian flights to Cairo were also suspended after the incident but resumed in 2018.

Thursday’s decision was reported by the TASS news agency, citing a decree by Russian President Vladimir Putin. It came three months after Russia declared its intention to resume chartered flights to Sharm El Sheikh and Hurghada, Egypt’s main resort cities on the Red Sea.

Before the 2015 crash, Russian tourists accounted for about 40 per cent of all foreign visitors to Egypt, mostly arriving on chartered flights to Sharm El Shiekh and Hurghada.

The Red Sea resorts are popular with Russian tourists because of their year-round sunny weather, sandy beaches and pristine water. Both are also world-famous diving destinations.

Russian emergency minister Vladimir Puchkov, fourth left, visiting the crash site of a A321 Russian airliner in Wadi Al Zoloma in 2015.
Russian emergency minister Vladimir Puchkov, fourth left, visiting the crash site of a A321 Russian airliner in Wadi Al Zoloma in 2015.

The resumption of the chartered flights comes at a time when Egypt’s vital tourism is slowly recovering from the effects of the coronavirus pandemic. The rates of infection in Red Sea regions has consistently been negligible since the epidemic broke out in February last year.

The government this week allowed hotels nationwide to operate at 70 per cent of their capacity, up from 50 per cent. Preventive measures remain in force.

Egypt welcomed 13 million tourists in 2019, the year before the pandemic struck, earning $13.03 billion. Last year, its revenues from the sector dropped to $4bn.

The tourist industry, which normally accounts for about 15 per cent of Egypt’s gross domestic product, earned the Treasury about $4bn during the first half of 2021.

Up to one million Russian tourists are forecast to visit Egypt this year.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Tips from the expert

Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.

  1. Sellers should focus on providing high-quality used goods at attractive prices to buyers.
  2. It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
  3. Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
  4. Be creative and look around your home for valuable items that you no longer need but might be useful to others.
The specs: 2018 Audi Q5/SQ5

Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder /  3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km

MATCH INFO

Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')

Man of the match Son Heung-min (Tottenham)

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MATCH DETAILS

Barcelona 0

Slavia Prague 0

Match info

Bournemouth 0
Liverpool 4
(Salah 25', 48', 76', Cook 68' OG)

Man of the match: Andrew Robertson (Liverpool)

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Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).

Updated: July 08, 2021, 5:08 PM